Cainiao Newsletter - Nov 2023

Hello from the Cainiao team.

In November, we witnessed a tremendous surge in inventory in preparation for the 11.11 Global Shopping Festival, tripling and surpassing last year’s peak across our 15 global warehouses. Notably, automotive accessories, 3C digital products, and consumer electronics have dominated the inventory, underscoring the evolving demands of our global consumers.

In order to meet our consumers’ expectations during this peak period, we launched new initiatives such as the 'Taobao PLUS' local return service as well as our six logistics guarantees for AliExpress customers during the shopping festival, including Just-In-Time service across 18 Chinese cities, over 210 flights per week, and smart order consolidation, among others. These provided consumers with greater peace of mind to enhance their shopping experience.

November also marked the 7th consecutive year of Cainiao's commitment to packaging recycling. 11.11 was a testament to the success of our sustainability initiatives, in which we released our very own carbon emission reduction ranking that saw widespread consumer participation. This brings us to our award recognition conferred by Forbes China in the list of ESG Innovative Enterprises 2023.?

Beyond 11.11, we capped off our Q2 with 25% year-over-year (YoY) growth, with a revenue of RMB22,823 million (US$3,128 million). We also launched customized services for the fast-moving consumer goods (FMCG) sector, collaborating with leading Chinese FMCG brand Bestore to implement solutions such as a goods labeling service and consolidated B2B inventory and supplier management.

Cainiao’s Overseas Warehouse Triple Inventory for 11.11, Surpasses Last Year’s Peak

Cainiao’s inventory for this year’s 11.11 sale tripled and surpassed last year’s peak in our 15 warehouses globally. The primary product categories contributing to this surge included automotive accessories, 3C digital products, and consumer electronics, collectively accounting for over half of the total inventory in overseas warehouses.

A notable trend this year was the increasing number of overseas merchants opting to utilize Cainiao's Spain warehouse for stocking fast-moving consumer goods, enabling more efficient inventory management and timely order fulfilment.

Cainiao Introduces 11.11 Global Shopping Initiatives to Optimize Customer Experience

We geared up to the 11.11 Global Shopping Festival by introducing initiatives such as the 'Taobao PLUS' service in Hong Kong, Macao, Taiwan, Singapore, and Malaysia, offering free shipping and improved logistics services.

For AliExpress customers, we promised six logistics guarantees such as a Just-In-Time service across 18 Chinese cities, over 210 flights per week, smart order consolidation, and a dedicated after-sales customer service to mitigate logistics disputes. These efforts aimed to optimize logistics for a seamless shopping experience during the festival.

Cainiao Launches Tailored Solutions to Enhance FMCG Supply Chain Offering

We recently launched customized services for the fast-moving consumer goods (FMCG) sector, including a goods labeling service and consolidated B2B inventory and supplier management, with Bestore, a leading FMCG brand, as our first partner.

These offerings aim to support FMCG brands to navigate local regulations and achieve cost savings while enhancing global expansion efforts.

Cainiao Celebrates 7 Consecutive Years of Recycling Efforts; Attains Top 10 Ranking for Carbon Reductions

We continue to uphold our seven-year commitment to express packaging recycling. During this year's 11.11 shopping festival, we unveiled a carbon emission reduction ranking, with Shanghai consumers leading the way in green recycling. There was widespread consumer participation, especially from university students.

The ranking also found that Taiyuan, Shanghai and Beijing were the top cities with the highest recycling rates for reused packaging at our stations.

Revenue Grew 25% YoY to US$3,128 million in Q2 FY24 Earnings

We are pleased to share that our revenue grew 25% year-over-year to RMB22,823 million (US$3,128 million), primarily contributed by the increase in revenue from cross-border fulfilment solutions.

Our recent roll-out of a premium 5-day delivery service in collaboration with AliExpress for consumers in eight countries and regions including Spain, France, Belgium and the Netherlands, as well as the upgrades made to our logistics solutions in other key global markets in North America and the Middle East have contributed to our sustained growth.

Cainiao is the Only Logistics Company to be Awarded Forbes China’s 2023 ESG Innovative Enterprise Award

Cainiao was one of the recipients for the prestigious Forbes China's 2023 ESG Innovative Enterprise Award. The winners were selected based on the 4 key criteria: business growth, ESG practice, innovative execution, and industry influence. Forbes China has long focused on China's development path centered on people and empowered by technology, making this award a huge recognition for our ESG initiatives thus far.

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